Application to Processing
The mortgage timeline begins at application, which under TRID is defined as the point at which the lender receives six specific pieces of information: the borrower’s name, income, Social Security number, property address, estimated property value, and desired loan amount. Once all six elements are received, the lender has three business days to deliver the Loan Estimate. For purchase transactions, the application is typically formalized when the signed purchase contract is provided along with the borrower’s documentation.
The loan officer reviews the application for completeness and may request additional documentation immediately. The file is then assigned to a loan processor, who begins compiling the documentation package, ordering the appraisal, and requesting the title commitment. Processing moves faster when the borrower has provided complete documentation at application, including pay stubs, bank statements, tax returns (if applicable), and identification documents.
Processing to Underwriting Submission
The processor’s primary objective is to build a complete file that the underwriter can review without needing to request basic documentation. This involves organizing all borrower documents, ordering third-party reports (appraisal, title, flood certification, tax transcripts), running preliminary compliance checks, and ensuring the file meets the lender’s submission standards.
The appraisal often determines when the file can be submitted to underwriting. If the appraisal is delayed, the processor may submit the file without it (some lenders allow underwriting to begin reviewing income and credit while the appraisal is pending), but the underwriter cannot issue a final approval until the appraisal is reviewed and the property value is confirmed. In practice, most lenders wait for the appraisal before submitting to underwriting to avoid incomplete reviews.
Underwriting Review Cycles
The first underwriting review covers all aspects of the file: credit, income, assets, employment, property, and title. The underwriter verifies that the loan meets AUS conditions, agency guidelines, and the lender’s internal policies. After the initial review, the underwriter issues conditions. The number and complexity of conditions depend on the borrower’s profile and the loan program.
The condition-response cycle is where the greatest time variability occurs. A W-2 salaried borrower with standard income and clean credit may have all conditions satisfied in one cycle (three to five business days from initial submission to CTC). A self-employed borrower with complex tax returns, multiple properties, and gift funds may require three to five cycles spanning 15 to 25 business days. Each cycle involves the borrower providing documentation, the processor resubmitting the file, and the underwriter completing a follow-up review.
Clear to Close Through Consummation
After the underwriter issues a CTC, the closing department prepares the loan document package and generates the Closing Disclosure. The CD must be delivered to the borrower at least three business days before consummation. In practice, lenders aim to deliver the CD four to five business days before the scheduled closing to allow for review and corrections without needing to move the closing date.
The settlement agent coordinates the final steps: scheduling the closing appointment, confirming wire instructions, preparing the settlement figures, and ensuring all parties are available. The closing appointment occurs on the scheduled date, documents are signed, funds are disbursed (table funded or post-closing funded), and the deed and mortgage are recorded. The timeline is complete when recording is confirmed and the borrower has the keys (purchase) or the old loan is paid off (refinance).
Timeline Comparison by Loan Type
Conventional loans typically have the shortest timelines because they have fewer property requirements and more standardized documentation. FHA loans may take slightly longer due to FHA-specific appraisal requirements (minimum property standards, property condition issues requiring repairs and re-inspection). VA loans include the Certificate of Eligibility (COE) process and VA-specific appraisal requirements, which can add time if the COE is not already on file or if the appraisal identifies minimum property requirements (MPRs). USDA loans require USDA conditional commitment approval in addition to the lender’s own underwriting, which adds a separate government review cycle of approximately one to two weeks .
Related topics include mortgage application process step by step, mortgage underwriting explained, mortgage closing process, rate shopping without hurting your credit score, and to choose the right mortgage lender.